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MrHughes Heard What Sounded Like Cries for Help from a Swimmer

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Mr.Hughes heard what sounded like cries for help from a swimmer located 30 yards from the ocean shoreline.He continued walking along the beach,however,because he figured that one of the many swimmers in the vicinity would provide help if it was needed.His reaction best illustrates the dynamics involved in


Definitions:

Operating Cash Flow

Operating cash flow is a measure of the cash generated by a company's regular business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

Net Present Value

The measurement of the profitability of an investment, calculated by subtracting the present values of cash outflows from the present values of cash inflows over a period of time.

Contribution Margin

The amount by which a product's sales exceed its variable costs, contributing towards covering fixed costs and generating profit.

IRR

Internal Rate of Return; a metric used in financial analysis to estimate the profitability of potential investments.

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